"I think the stocks that you can buy are the ones that have been so hammered that even if it doesn't turn out that there's a deal, the downside's limited," he said. "The ones that are really dangerous are the ones that are untested and haven't gone down enough."

His rule of thumb: Stocks that are down 10-12 percent, "those are OK to buy now," he said.

"I don't want to say anything's immunized...but if you get a stock that's already reported within reason and you don't think that the outlook is going to change dramatically because oil goes to $110...you have something you can let go as oil goes down, if it's just a short-covering rally" he said.

"It's a trader's market and it's a good one," he concluded. With that in mind, Cramer likes Freeport-McMoran.

"I think Freeport is a company that has already taken it on the chin," he said.